Sharing common inputs across business lines can potentially generate synergy that justifies related diversification. The pursuit of such synergy through diversification is, however, fundamentally driven by the indivisibility of inputs between firms. Following Penrose's insight, I argue that to...

Consumer advocates won a victory with the passage of the Credit Card Accountability Responsibility and Disclosure Act of 2009. (Credit Card Act). The Credit Card Act bans certain pricing practices that were confusing to credit card users. Ironically, the seeds of this legislative victory may...

With the search for next generation drugs getting harder, longer, and more expensive, pharmaceutical companies are scrambling to develop a broader suite of relevant capabilities (e.g. specific disease areas, high throughput drug screening, payor management, etc.). For example, biotech companies...

We characterize a firm as a nexus of activities and projects with their associated cash flow distributions across states of the world and time periods. We propose a characterization of the firm where variations in the market price of risk induce adjustments in the value-maximizing combination of...

Since the seminal contribution of Teece et al. (1994), the strength, scope and quality of corporate diversification is often detected comparing the observed value of some statistics derived from the diversification patterns of a sample of firms, with its expected value. The latter is obtained...

Using data on all bariatric surgeries performed in the state of Pennsylvania from 1995 through 2007, this paper uses logistic and OLS regressions to measure the effect of star physicians and star hospitals on the diffusion of an innovation in bariatric surgery called laparoscopic gastric bypass...

This paper asks how market expansion contributes to productivity growth. It investigates whether entry to both new international markets and new domestic markets is associated with greater productivity growth. It also examines whether exit from export markets is necessarily associated with...

Genetically modified (GM) herbicide-tolerant (HT) crops have been largely adopted where they have been authorized. Nevertheless, they are fiercely criticized by some, notably because of the herbicide use associated with them. However, how much herbicide is applied to GMHT crops compared to...

This field experiment examines output quantity and quality for workers in a data input business. We observe two sets of workers that differ in monitoring intensity as they move from time to piece rates. The application of piece rates increases quantity, and we find that the resultant quality can...

Genetically modified (GM) crops have been and continue to be a subject of controversy despite their rapid adoption by farmers where approved. For the last two decades, an important matter of debate has been their impact on pesticide use, particularly for herbicide-tolerant (HT) crops. Some claim...